As expected, Intel is reporting a much “better than expected” quarter. The numbers were well above analyst estimates:
- Revenue $10.3 Billion vs estimates of $9.83 Billion
- Gross Margin 63%
- Operating Income $3.4 Billion
- Net Income $2.4 Billion
- EPS 43 Cents vs estimates of 38 cents.
CSX also reported a “better than expected” quarter after the bell with EPS of 78 cents vs estimates of 70 cents. More important were comments from CEO Michael Ward on the economy:
“CSX drove strong efficiencies in its operations and produced outstanding results as the economy continued to recover”
As we’ve been saying for several months now, the estimates for Q1 appeared woefully shy of reality. It never ceases to amaze me how far off the analysts can be. Both stocks are rallying in the after hours market as market participants are clearly as surprised as the clueless analysts.